In a recent development reported by the Financial Times, entrepreneur Elon Musk is leading xAI in active discussions to secure $6 billion from a global consortium of investors, including prominent family offices based in Hong Kong.
This move signifies xAI’s determination to establish itself as a strong competitor in the market, aiming to rival industry giants like Microsoft and OpenAI.
Insights gathered from three reliable sources with direct knowledge of the matter confirm that negotiations are currently underway, though subject to potential changes.
Elon Musk is reportedly unwavering in his pursuit of a $20 billion valuation for xAI. To achieve this goal, Musk has engaged with sovereign wealth funds in the Middle East, as well as potential investors from Japan and South Korea. Morgan Stanley is reported to be organizing the fundraising efforts, but the bank has not officially commented on the matter.
READ MORE: PTCL Group extends collaboration with SNGPL for mobile services.
In contrast, xAI’s rival OpenAI, known for creating ChatGPT, has already secured an impressive sum of approximately $13 billion, with Microsoft serving as its primary investor. OpenAI is also gearing up for a substantial new funding round to support its ongoing growth ambitions. Another significant player in the large language model (LLM) startup domain, Anthropic, has secured a substantial investment of around $6 billion, backed by major tech players Google and Amazon.
Recently, xAI achieved a significant milestone by securing investor commitments totaling $500 million, marking a substantial step toward its ambitious funding target of $1 billion. Valuation discussions during these negotiations are within the range of $15 billion to $20 billion. The Financial Times has gathered this information from credible sources, emphasizing the dynamic nature of the ongoing discussions.
